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Zara: Inditex Share Price Gains 9% After Swinging to a Profit

practice Stock Trading
Updated: 16 September 2020

Shares of Inditex (BME: ITX), the owner of Zara, Bershka and Massimo Dutti brands, soared higher today after the firm reported that it recorded a profit again after swinging to a loss in the previous quarter.

Inditex posted a profit of 214 million euros for the period from May through July, smashing 96 million market estimates collected by Refinitiv’s SmartEstimate model.

A higher-than-expected profit came in despite a 31% tumble in sales due to the pandemic and lockdown measures. The fashion retail giant noted that 98% of its stores had reopened.

Moreover, Inditex has witnessed a continuous uptick in demand since August 01, but sales are still 11% lower than the year-ago period. Similar to its competitors, Zara’s owner recorded a huge surge of 74% in online sales for the first half of the year.

Inditex stock price soared higher today after the firm reported that it recorded a profit again September 2020

Inditex share price gained around 9% on Wednesday after the Spain-based fashion giant posted a profit.